Scope of the Audit
The audits should focus on the following:
The correctness and completeness of the accounting records,
The financial report, showing all project related income and expenditure structured by budget lines,
Deviations of expenditure by budget lines. The expenditure, which exceeds or falls below the budget appropriations by more than 30 %, shall be explained separately, if the approval of the BMZ has not previously been obtained,
That receipts and relevant supporting documents are available for all project related income and expenditures,
The management of the funds made available, which includes the transfer of project funds, all interest earned from the project funds during the reporting period and further income generated by the project,
Reviewing the appropriate use of funds according to the project objectives,
Evaluation of the efficiency and cost-effectiveness of the usage of funds,
Budget adherence through the comparison between budgeted and actual costs in the currency in which the expenditure was incurred. The audit reports will not convert the examined amounts into the Euro amounts,
Reviewing if personnel costs and social security contributions conform to the regulations in the project country and are locally comparable,
The economical use of the project equipment and assets,
The inventory and the use of capital items, their whereabouts and their purposive usage,
Compliance with the legal framework of the project (project agreements and annexes, contracts, etc.) and the donor requirements,
Compliance with the policies of the local implementing partner regarding procurement, financial administration, human resources management and travel.